From the first batch of quarterly tech earnings report cards to massive job cuts at Microsoft, this is your Tech Rewind.
Continue Reading Below
After hinting at looming changes last week and ahead of its earnings next week, Microsoft (MSFT) CEO Satya Nadella announced in a letter to employees on Thursday that the company will slash its workforce by as many as 18,000 jobs in the next year. The blue-chip software giant said the majority of the cuts will come in the next six months. The Microsoft chief cited wanting to focus on innovation as the reason for the move, explaining it would help energize the company and its work.
Unlikely partners and once arch-rivals, Apple (AAPL) and IBM (IBM) are teaming up on a new class of business apps to spur mobile-led enterprise. The duo looks to “redefine the way work will get done” by addressing “key industry mobility challenges” through 100 new enterprise designs for iPhone and iPad. Additionally, IBM will use its large consulting-and-software developer-base to create industry-focused solutions.
Both companies’ shares climbed Tuesday on the news, and Thursday, Big Blue posted a second-quarter beat, topping views on the top and bottom lines. IBM revealed profits per share of $4.32 on sales of $24.4 billion, while Wall Street had expected an EPS of $4.29 on revenues of $24.1 billion.
Google (GOOGL) announced this week Alan Mulally joined its board of directors on July 1 after retiring as Ford (F) CEO, a position he held since 2006 helping lead the automaker through the financial crisis. The search giant logged mixed second-quarter results on Thursday, but said it saw strong demand for ads on its websites. Google posted adjusted 2Q profits of $6.08 a share, shy of estimates of $6.24 a share. Revenues of $15.96 billion, however, beat estimates of $15.61 billion.
Intel (INTC) shares rose almost 7% to a decade high after the chipmaker forecast better-than-expected quarterly revenue amid a rebound in PC demand. The company reported a profit of $2.8 billion, or 55 cents a share. Analysts had expected per-share earnings of 52 cents and revenue of $13.69 billion.
Continue Reading Below
Visa (V) launched a competitor to PayPal midweek, just as eBay (EBAY) reported a boost in quarterly revenue, though its third-quarter outlook came in slightly shy of views. EBay booked adjusted 2Q profits of 69 cents a share, beating estimates by a penny, and sales of $4.4 billion, essentially matching the Street’s views.
And Amazon (AMZN) on Friday unveiled Kindle Unlimited -- a new subscription service that lets users read and listen to unlimited ebooks from a library of over 600,000 titles on any device for $9.99 a month. Amazon’s shares jumped 1.64% on Friday.